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Explain why tax revenue changes when the economy goes into a recession?
Wiki User
∙ 10y ago
Tax revenue changes when the economy goes into a recession. When there is a recession, the government increases tax revenue. The government does this because less people are spending money.
Wiki User
∙ 10y ago
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What do governments do to stabilize the economy?
Progressive taxes. When economy is in a boom, income of people increase, tax collected increases, alleviates the huge rise in consumption. Tax revenue of government also increases. When economy is facing recession, unemployment results and amount of taxes government collect will reduce due to the lowered income. Government can then use the tax revenue collected previously to induce spending through the use of Govenment expenditure or welfare benefits
What the impact of the economy in a business?
The economy directly affects business. When consumers have buying power, businesses will see more revenue. When the economy is depressed, businesses will see less revenue.
Marginal revenue curve?
Explain why the marginal revenue(MR) is always less than the average revenue (AR)?
How does business help the economy?
Business help the economy by generating revenue. There is also creation of employment which means that more people are able to get an income which boosts the economy.
Explain Why and how the concept of an organization is changing?
increase productivity, revenue.. etc
What do governments do to stabilize the economy?
Progressive taxes. When economy is in a boom, income of people increase, tax collected increases, alleviates the huge rise in consumption. Tax revenue of government also increases. When economy is facing recession, unemployment results and amount of taxes government collect will reduce due to the lowered income. Government can then use the tax revenue collected previously to induce spending through the use of Govenment expenditure or welfare benefits
What the impact of the economy in a business?
The economy directly affects business. When consumers have buying power, businesses will see more revenue. When the economy is depressed, businesses will see less revenue.
Marginal revenue curve?
Explain why the marginal revenue(MR) is always less than the average revenue (AR)?
What is the positive impact of tourism industry on the economy?
Increased tax revenue, and increased revenue of firms
What is the free sheet business model?
In regard to the newspaper industry, the freesheet model is one that makes all its revenue from paid advertising. The paper itself is free to consumers. This type of model can work well when the economy is healthy, but can produce big losses during a recession.
Why was Ghana Revenue Authority formed?
The Ghana Revenue Service was formed in order to compute and control the income and expenditure of the country or economy.
How does business help the economy?
Business help the economy by generating revenue. There is also creation of employment which means that more people are able to get an income which boosts the economy.
Explain Why and how the concept of an organization is changing?
increase productivity, revenue.. etc
What is parallel economy?
Parallel economy related to the black money or unaccounted money. It causes big loss in the tax revenue for the government.
What is an example of indirect cause?
An example of an indirect cause could be a company laying off its employees due to a decrease in consumer demand caused by a recession. The recession indirectly leads to the job cuts by impacting the company's revenue and necessitating cost reductions.
Is a budget surplus better than a budget deficit?
It is better to have a deficit budget at it gives a boost to the economy for development with scope for further surplus (revenue or borrowing).Surplus budget is detrimental to economic growth because an economy will have resources but no plans.
Are trade unions a drain on the economy due to revenue lost as a result of strikes?
yes...they are
